"erin burnett outfront." are investors really panicking about four years of obama or is it something else causing the fear? and the gop licks its wounds and starts pointing fingers. here with us tonight, a possible 2016 candidate. and another nor'easter bearing down on the region still recovering from superstorm sandy. let's go "outfront." good evening. "outfront" tonight, markets tanked. the day after president obama

wins a second term, the dow has its worst day in a year. the dow finished the day down nearly 313 points. for the first time in three months, it closed below 13,000 and when you look at the broader markets, all were down 2.5%, so is the election really to blame? "outfront" tonight, michael farr, author of restoring our american dream. good to see you. i know there were a lot of markets often go down on the day after an election and they're worry about the fiscal cliff and europe. -- >> you really can't tell. certainly we had a couple of point run-up prior to the election and then this morning without the distraction of all of a political punditry and bluster, we see marcus all of a sudden come back down. perhaps investors confronted the fiscal cliff and what's going on in greece.

they need another $40 billion. china's slowing and we've got 2% gdp growth. fairly tepid. >> the credit rating agencies, the we couldn't make a deal last time around. fitch was one of them just hours after the president was re-elected. said if they don't avoid the fiscal cliff, we're going to face another downgrade. they say hey look, the first downgrade, it still hasn't caused interest rates to surge. should we be? >> we saw the rates rally and go lower after the last debt downgrade and today, even though things look worrisome, we saw the ten-year treasury bond go even lower. absolutely amazing. the federal reserve reserve is targeting inflation close to 2% and the government saying the government's willing to pay 1.62% for a ten-year piece of debt. investors are very skiddish and looking for a return of capital, so i think it continues to be a big deal and we have to stay focused. and these problems have to be addressed with congress showing real leadership.

time's running out and perhaps markets were reacting more than that. all the polls and sort of in trade still showed president obama ahead. we don't have a whole lot of change day-to-day. shouldn't have been a lot of reason for shock from where i sat. >> thank you very much. he points something out that i think is important to remind everybody watching. the market expected the president to win. it doesn't drop on something it expects to happen, so maybe it was just a realizization the price is upon us. just moments ago, president obama arrived back at the white house. earlier today, aides were quick to point out that the president had already called key congressional leaders in both parties to talk about his agenda. house speaker john boehner responded this afternoon. >> and for this to work, we need to plan for a serious process. focus on substance, not on the at it will require week of work

rather than a weekend of photo op. it won't happen around a campfire at camp david or as much i'd like over 18 holes of golf. i think this is going to take time, but if we're all striving for a solution, i'm confident we can get one. >> chris van hollen, a member of the supercommittee on deficit reduction. he knows a lot. good to see you in person. >> it's great to be here. >> we're all running on fumes and now, we have to get on those fumes and solve this problem because the market is right. it is a crisis and it has to be dealt with. what i don't understand is, a little change in the senate, but -- why is it going to happen now. >> first of all, a lot of the republicans in congress have been focused primarily, maybe we can move beyond that objective. the second is the structure of

the situation. the cliff creates big risks, also, opportunities. because not resolving the fiscal cliff will create problems for the country. we need to focus on two things. we need to accelerate the recovery and we need to act now to come up with a balanced, long-term plan to reduce the deficit. >> obviously, those are the, how we do that is the big question. now, john boehner had something to say today about revenue. by revenue, everybody, we're talking about, well, that's the whole point. there's different things we could be talking about. here's john boehner. >> there will be many who will say that with the election over, we should confront the first of these challenges by letting the top two tax rates expire and pushing the sequester off. it won't get us out of the problem and it will also hurt

our economy. because the american people expect us to find common ground, we're willing to accept some additional revenues via tax reforl. >> now, when i hear that, i don't hear i'm okay letting taxes go up on some people. i hear i'm okay closing loopholes and deductions where some high income earners may pay more than others. is that a deal you could work with? >> the question is is, what is speaker boehner saying? he really talking about a balanced approach or what he used to talk about and republicans have claimed, which is another round of tax breaks for wealthy people will somehow trickle down, magically boost the economy so much that it will pay for itself and not increase the deficit. we know that doesn't work. and if that's what speaker boehner's talking about, then really, it's not going anywhere. now, if he's talking about what we call genuine budget revenue, that's a different story and if

that's the case, i'd love to see his proposal. the president has put his on the table for revenue. let's see speaker boehner's proposal. he wants to do this in the open. let's see it. >> of course, he and the president had a deal and fingers can point all kinds of ways, but that failed. let's hope they can. but who's going to take the lead in negotiations on your side? is it going to be somebody who has been rather polarizing like nancy pelosi or someone else? >> during the talks between the speaker and the president, leader pelosi was willing to support whatever compromise they came up with. i think that remains to be seen exactly who is going to be the negotiator or negotiators. obviously, the white house has to engaged and obviously the president will make clear as he has in his speech last night, that we need to compromise. we need to come together on these issues. it is important to know the

president does have a plan on this issue. it's been sitting in front of the congress for a year. republicans keep saying he doesn't have one. it's just they don't like the president's plan he's put forward. it does take the balanced approach. >> which plan is this? >> this is the plan to reduce the deficit and eliminate the sequester over a ten-year period by $4 trillion through a combination of cuts and revenue and he's very clear on how he generates. >> but he didn't back simpson bowles, which had the same plan. >> but the framework of his proposal, a mix of cuts and revenue, is much closer to simpson bowles than anything the republicans have put on the table. >> so, will the president negotiate this himself? a lot of reason people were upset with him, that the country was slit on this election was because it seems other people got the job of doing that actual nitty-gritty during the negotiation. is that going to change this time? >> i think the president will be directly involved. he was in the conversations with

speaker boehner and i would say that while this was a kind of close election, the reality is the president had the decisive victory and the president is very clear on this point that this was a choice election. that's the one thing he and mitt romney agreed on, right? you can assure that if mitt romney and paul ryan had won, they'd say they have a mandate r for imposing the ryan romney budget. the president talked about this issue. he says we need to ask higher income individuals to pay more to generate revenue, as part of the solution. part of the solution along with cuts, to reducing the deficit, so it's not as if this hasn't been an important part of the campaign argument. so we'll have to see how this goes. >> i'll look forward the to talking to you more about it. you know what investors are telling me, you got to go about four times bigger.

>> i think the framework of the bipartisan commission is right and it would be great if our republican colleagues would adopt that. people like grover norquist have said that's just a subterfuge to raise taxes on the american people when in fact, it's a balanced approach to getting the job done. >> still to come, the keys to victory. how the president won and the voters who turned against the republican party. tonight, there are warning signs for both sides. john king at the magic wall. the man does not sleep. he is back. plus, after last night, what is next for the republican party? bob mcdonald is "outfront," next. and round two, a nor easter slamming the battered northeast. people who just got power back after a week have lost it again. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores.

rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. we'rwith questions fromtump sombing elections.kies do you know where your polling place is? maybe somewhere around my house. mine's just, right over that way. well you can find out exactly where it is using bing elections. it's a good day for politics. which way do you lean politically? conservative. republican. well, using the bing news selector you can find news from whichever way you lean. (together) social on this side, financial. which party is currently predicted to win a majority in the senate? the republicans? would you make a bet on that? no. are you chicken? or that printing in color had to cost a fortune. nobody said an all-in-one had to be bulky. or that you had to print from your desk. at least, nobody said it to us. introducing the business smart inkjet all-in-one series from brother. easy to use, it's the ultimate combination

is of speed, small size, and low-cost printing. campbell's has 24 new soups that will make it drop over, and over again. ♪ from jammin' jerk chicken, to creamy gouda bisque. see what's new from campbell's. it's amazing what soup can do. see what's new from campbell's. when you take a closer look... ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level. let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this.

our second story, the gop in disarray. republicans didn't only lose the white house, they lost three senate seats, also. john cornyn, the chair of the group responsible for getting republicans elected to the senate said that his party needs to reassess and while some will want to blame one wing of the party over the other, the reality is candidates from all corners of the gop lost tonight. clearly, we have work to do in the weeks and months ahead. so, how does the republican party regain its footing? bob mcdonald is chairman of the republican governors association. we appreciate you taking the time. how does the republican party go about recalibrating? it's fair to say that a couple of days ago, so many of the republican party really believed they can win this and when you

look at electoral college, your state, it wasn't even close. >> it was a very disappointing night. they deserve a lot of credit for running a very organized campaign. it was closer this year, two and a half points than virginia versus seven last time, but we did win 8 out of the 11 congressional seats and picked up 30 governors for the team. which is the highest level in 12 years. maybe another in washington state, so there was some bright spots, but overall, i agree. a combination of tone and message and reaching out to new and minority voters and making sure that we do a better job on the ground. >> well, gracious to come out and directly admit it, although you are right on on the governor's side. one of the wings that cornyn was referring to was the tea party and some big name tea partiers

lost last night. joe walsh, josh mande ll, richard murdoch in indiana. he had a specific situation there with the comments he made on abortion, but i think the question is is the tea party still relevant? is it now become an albatross? >> erin, what the tea party and other conservatives that believe we ought to -- balance budget, i think that's pretty a mainstream idea. they helped me immensely with the victory in virginia three years ago. i think it's how we organize. how we deliver the message. we've got to be a lot more inclusive and open and energetic by expressing why these are -- we've just got to do a better job with that. so, i think it's a lot of energy that still helps us immensely at the polls and getting people

out. we've got to outorganize on the ground. >> tea party patriots jenny beth martin, had this to say about mitt romney. here she is. >> we wanted a fighter like ronald reagan. what we got was a weak, moderate candidate, hand picked by the beltway elites and country club establishment wing of the republican party. the presidential loss is unequivocally on them. >> what's your response to that? >> well, i respectfully disagree. this is the way the process works. we have 20 debates and the people chose. mitt romney is an incredibly smart, talented, decent guy who worked very hard and i thought was a good messenger for our cause. that was a dead heat. going into the election.

in fact, two weeks ago, before the hurricane, erin, we were up by three to five points in swing states and we thought we were heading towards a victory, so i'm not going to recriminate. we've just got to realize what he did right, wrong, improve and do a better job of delivering the message. but hand it to the president for running a good closing argument and good ground game. >> what does someone like you think about 2016? you're one of the names that could be running. what are you focusing on? is it really focus all the time on reaching out on immigration and to hispanics? >> i think it's 24 hours after the polls close, so i'm not thinking about 2016. i'm thinking about virginia with a legislative session coming up, but i think the future of the party is with republican governors. we may have 31 when washington state finishes counting on

friday. and i think that the leaders that are in our party that are conservatives that are ceos of the states balancing budgets without raising taxes, knotts making excuses. getting jobs created. this is where the message is going to come on how we can govern better than the way washington's governing now with democratic ruling, so i think we're going to see more of those leaders rise up. >> and still "outfront," the president got re-elected on a coalition that did not count on white men. is that group's influence gone forever? and the northeast reeling from superstorm sandy. now, being hit with another powerful storm at this moment at its peak. we'll be back. rs of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them. that's why at devry university, we're teaming up with companies like cisco to help make sure everyone is ready with the know-how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu/knowhow. ♪

consider the silverado 1500 -- still the most dependable, longest-lasting full-size pickups on the road. and now we've also been recognized for lowest total cost of ownership -- based on important things, like depreciation, fuel, and maintenance costs. and now when you come in, you can trade up to get a total value of $8,000 on a 2012 chevy silverado all-star edition. from outstanding value to standing the test of time, chevy runs deep. that can only come from having someone else pay your mortgage for an entire year... this is what you'll experience if you win the quicken loans skip-a-year mortgage sweepstakes. up to five winners will get to skip a year of mortgage payments... courtesy of quicken loans. enter often at skipayear.com for more chances to experience...this... the skip-a-year mortgage sweepstakes. one more way quicken loans is engineered to amaze!

hit again. a powerful nor'easter bearing down on the east coast tonight. 60 mile an hour winds. wintry mix. snow in many places. 600,000 in the new york new jersey area have no power or heat. 8,000 are in shelters after their homes were -- many today who had just gotten power back lost it again. i went to see many of the devastated areas on staten island. rob, i know you've spent the day there. what is the current conditions.

it doesn't look good. >> no, it doesn't. can you believe this? this is a week after a tropical system or nearly tropical system moved through and crushed it. from jersey, staten island area across queens and connecticut. now, it's coming down almost blizzard conditions. we've had wind gusts. eastern long island and buzzard's bay of 76 mile answer hour. over a half of foot of snow in some places. three inch, maybe four on the ground. you know this time of year, if it's sticking on the grown, it's coming down pet hard, because the ground is so warm. one thing that's good is if we don't have a surge like we were afraid. so this is an area that had water up and over my shoulders when sandy came through. devastating floods to this community. certainly, without power and heat, cold and snow and wind tonight is not boding well for these folks. >> how are people coping? when they were given an alternative, they didn't wabt to leave and were worried about looting. so where are people going?

>> a lot of people are hanging tough. there's diane, anthony making the best of a bad situation. people just coming out of the inside to dry things out. ripped off the sheet -- over seven or eight days now. we have carbon monoxide -- and this, there's a lot of people in this neighborhood. >> thanks to rob marciano. finally cranked up the indoor heater there. and they have car montana oxide monitors going just in case. hanging tough. sleeping upstairs, all in the same bedroom. a lot of people in the neighborhood doing the same thing, erin. >> very powerful images.

up next, was jeb bush right? president obama won the overwhelming support of latinos. the fastest growing seg m of the american population. is the gop doomed without them? plus, pot. how marijuana helped the president win. the wheels of progress haven't been very active lately. but because of business people like you, things are beginning to get rolling. and regions is here to help. making it easier with the expertise and service

to keep those wheels turning. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together. that make kids happy. and even fewer that make moms happy too. with wholesome noodles and bite sized chicken, nothing brings you together like chicken noodle soup from campbell's. it's amazing what soup can do.

like chicken noodle soup from campbell's. one is for a clean, wedomestic energy future that puts us in control. our abundant natural gas is already saving us money, producing cleaner electricity, putting us to work here in america and supporting wind and solar. though all energy development comes with some risk, we're committed to safely and responsibly producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now.

[ horn honks ] hey, honey. do we have life insurance? ♪ [ male announcer ] or visit fidelitylife.com to secure your family's future today.

welcome back to the second half of "outfront." we start with stories we care about, where we focus on our reporting from the front lines and we begin tonight with the director of a controversial islam film who has been sentenced to a year in prison for probation violations. he admitted to charges which accuse him of using an alias. they violated the terms of his violation from a 2010 bank fraud case. the movie that was blamed by some for sparking riots throughout the muslim world and was initially blamed for the attack in libya. the greek parliament has approved a new set of austerity measures. they needed to pass the program to get more bailout money. the package cut spending and pensions.

raises taxes an the retirement age. as many as 70,000 people took to the streets of athens to protest the measures. some threw molotov cocktails which forced the police to fight back. greece is being asked to bring on a lot of fiscal pain, he says we'll see more stress over the next couple of weeks. graham spanier was arraigned today on charges he tried to cover up allegations that jerry sandusky was sexually abusing boys on the school campus. among the charges, obstruction of justice, endangering the welfare of children and purgery. bail is $125,000. but it is unsecured, so that means he doesn't have to pay it unless he fails to show up for a court date. he will not be allowed to travel outside the state without the court's permission. after meeting with with the president, one militant group in mali is urging other groups to start a political dialogue and it's an important group, at least from our understanding when we were covering the story.

the armed group is one of many to have taken over the northern part of mali. what does that mean? state department spokesman welcomed the announcement that says the group has only talked the talk and need to walk the walk and actually work on a deal. it's been 461 days since the u.s. lost its top credit rating. it is time to ask what are we going to do to get it back. and now, our fourth story. president obama won re-election last night despite only getting 39% of the white vote. 20 percentage points behind romney. other crucial voting blocks carried the president to victory and that's raising major red flags for the are republican party today. john king is breaking down the numbers. democrats made major gains. i want to break each down. start with latinos. i know there was it was double digit in terms of latino vote.

>> giant. this is a generational problem for the republican party. 72% of the electorate. it's red because romney won it. but 13% african-americans. the president kept that in tact. for the first time nationally, latinos hit double digits and 71% of the latino vote nationally goes to president obama. that's nationally. now, let's swing this over and look at it by states. in nevada, the white vote was down because it was 19%. nevada used to be a swing state. 71% again in the state of nevada. one of the key battlegrounds. let me give you one more example. colorado. once a red state, now a purple state. latino vote, double digits and 75%. 75%. let's look over here. president wins nevada. once a swing state.

wins colorado. wins new mexico. this used to be one of the classic swing states in american politics. don't even think about it anymore, right? and he's probably going to win florida. why do i circle those? i'm going to slide this little barrier. the darker the colors, the higher the latino population. nevada, colorado, new mexico, florida, you can find other places as well up into the midwest. the republicans don't solve this problem. this is a crisis for the republican party. >> it certainly is. we're going to talk more about texas in a bit because i see that orange there. what about women? i know this war on women fight, a lot of people wondered whether it would be effective, but when it actually happened -- >> in a word, yes. >> romney did not make up that gap again. >> play the exit polls. nationally, less than half the electorate is men. governor romney wins it. but look, this is not rocket science.

53% of the electorate are women. they're going for president obama. if you're getting 55% among the biggest chunk, you are well on your path to victory. let's move it over. go through the battleground states. you start getting -- swing states, he's winning in then you come over here, this is the mother of all battlegrounds, welcome back from columbus. 2% of the electorate in ohio are women. 55%. the combination of the diversity obama coalition. you add it up, simple math. as every as bill clinton said, sometimes it's just arithmetic. >> in that speech. there was another area that was traditionally republican, but it shifted. the suburbs. >> we'll do a little -- turn this up. if you look at this close presidential election, 2004, post presidential elections in american politics won the

suburbs. this is the 2000 election. you see bush winning in the denver suburbs. the president wins, the democrats win in downtown. that's senator kerry in that year. but now, 2012. it's blue. in the key swing states, the democrats dominate in the suburbs. back over to ohio and let's make sure, now mitt romney did a good job. he won lake county, which is a trouble spot, but that's a big suburb just outside of cleveland, but look around columbus. sorry. outside of the columbus city where you were in, the president wins in the suburbs. down here in cincinnati and around here, this has to be for the, look at this election. go back to 2004. see hamilton county, that's cincinnati. when it's red, republicans win the state. when it's blue as it was in 2012 and 2008, the democrats carry it.

why? because of the suburbs and the suburbs is one of reasons, look down here around philadelphia. all the close in suburbs there. that used to be republican territory, but in 2012, obama wins it. four years ago, he won it. in 2004, he carried it as well. this is why this has been a democratic state for so long. you have to go back and back and back. back to george h.w. bush to when republicans were competitive. again, latinos, african-americans, it's been a long time crisis. suburbs, especially suburban women. in big states like this, the republicans have a problem. >> john king. thank you very much. democrats making such major gains among latinos, women, sush ban voters, what can the gop to gain ground? bill burton, also a senior strategist with priorities usa, is super pack that supported president obama. i'm sure you're going to be glad not to raise money -- let me start with you because when john started out talking about the latino vote, these numbers are

pretty shocking and overwhelming. bush in 2004, 44% of the vote. mccain. 31% and now, mitt romney at 27%. what happened to the enroads made by george w. bush? >> there's no coat tails. with hispanics and gop, they don't really exist. latinos vote for a candidate, not a party. for many, the republican brand is very tarnished. it's seen as she doesn't care for the latino community or those interests, which are all these very false stereotypes. over the last 40 years, republicans earned 30% of the hispanic vote. that's about the average. and we understood if we do not get up into the 37, 38, 39%, the republican party will fail to win national elections from probably 2012 on. >> that's a pretty incredible

thing. >> you saw john king put up that map. i mean, there's a state that stands out there. that state was texas. are we now looking at a point where texas could be something you could make a play for as a democrat? >> i think texas is no doubt going to be a purple state. just a place where the way the population's changing is just going to be better for democrats. now, what mitt romney failed to do during this election is make a strong case to hispanic voters why they shouldn't feel a way about him they suspected watching him run to the right of rick perry. he never made a case to hispanic voters. no real money was spent on hispanic outlets by the romney campaign. i think as a result, we really had no place to grow his support. >> there's two things. i think a tremendous amount of money was put into this election for latinos in comparison to what they should be doing.

in texas, i'd have to argue. ted cruz, democrats would like to believe the democracy is to lean to the democratic party as latinos grow, they're going to naturally move in. majority of latinos will be democratic, but there are many split ticket voters. many who can't find a place in the republican party with the right candidate and right message. >> and there's people like marco rubio who said before the election even happened, the republicans need to reach out more. gloria, what about the flip side? three quarters of the voter are white in this country and the president did not particularly do well among white men. is that a red flag for the democratic party, it just doesn't matter? >> it depends on which way you look at it. they've known they have a problem with white men. particularly because of the economic issues. but when you look at the question of who cares most about my problems, you know, the president overwhelmingly did very well and a lot of those people are white. blue collar working men, which

is one of the reasons he won in the state of ohio. i think the larger problem quite frankly, is for the republican party because you see that the percentage of the white electorate shrunk, right, from 74 to 72 and i think you know, that is a problem for republicans because they need to start reaching out. you're just talking about latinos. that's a growing community in this country. and i think you know, if the republican party doesn't wake up and say okay, you know what? we need to figure out a way to do immigration reform because there is no reason we should be alienating minorities who might be with us. >> bill, my question on this, when you look at the hispanic vote, so many ways, it seems it should be natural for some of them to vote gop. family oriented. >> there are ways that mitt romney could have dove tailed into the hispanic community, but

what gloria said, i actually am concerned as a democrat that the demographics are not great for us going into 2016. the next candidate on the ballot is not going to be barack obama. we're not going to get the kind of margins we got with the african-american community. so i actually think that democrats do find a way to recognize there is an issue with white voters and figure out how to reach out and find the language that works. >> you are the only white male in the conversation. >> makes a really interesting point because if you look at the republican candidates winning, especially winning statewide, marco rubio, ted cruz, they're winning across the board. not majority districts. they are winning with all specters of the voting electorate. that's significant for the

republican party. points to the fact we're building a back bench. what our leaders are going to look like in the future. that's the bright side. on the negative side, you have a lot of the young latinos who believe that the republican party doesn't connect with them in any way. >> here's the problem. you know, in the end, mitt romney did not get through with his economic message and you know, as you go through this primary season and whole election season as you know, erin, mitt romney in the end was sort of starting to do pretty well on who's better able to handle the economy. >> right. >> as you saw in the exit polls last night, the president was at parody with mitt romney on who's better able to handle the economy. but he did so much better on who cares about my problems and who understands the middle class and i think the republican party heading into the discussions we got over the fiscal cliff and the question of who's going to solve the debt crisis, who's going to solve the financial crisis, who's going to get us more jobs. i think that's an issue the

republicans in congress have to think of because that's where they failed. >> thank you. it wasn't just the minority voters or women who helped the president. remember karl rove's whole thing? put a little ballot initiative that riles up your base on the far right. they did it on the far left. plus, iran could become the biggest challenge the president faces in the next four years. what my sources are telling me about iran's reaction to obama's victory. full-size pickups on the road. and now we've also been recognized for lowest total cost of ownership -- based on important things, like depreciation, fuel, and maintenance costs. and now when you come in, you can trade up to get a total value of $8,000 on a 2012 chevy silverado all-star edition. from outstanding value to standing the test of time, chevy runs deep. we'rwith questions fromtump sombing elections.kies do you know where your polling place is? maybe somewhere around my house. mine's just, right over that way. well you can find out exactly where it is using bing elections. it's a good day for politics.

which way do you lean politically? conservative. republican. well, using the bing news selector you can find news from whichever way you lean. (together) social on this side, financial. which party is currently predicted to win a majority in the senate? the republicans? would you make a bet on that? no. are you chicken? since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪

try this... bayer? this isn't just a headache. trust me, this is new bayer migraine. [ male announcer ] it's the power of aspirin plus more in a triple action formula to relieve your tough migraines. new bayer migraine formula.

a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

we are back with tonight's outer circle where we reach out to our sources around the world and we begin with reaction to the president's re-election in the middle east. the egyptian blogger tweeted obama keeps his house and job. congratulations, b. we saw this last night during the, as the results were coming in. all of the tweets from that part of the world. a lot of excitement. one of my sources in the region told me the whole middle east wanted to vote, all excited about obama. important to note this is someone who said they would be hit by higher tax rates and happy to pay them for the privilege of living in the united states. i asked how the results will affect iran's nuclear program? >> erin, it didn't matter who won these elections. iran had made it clear that it

planned to press forth with its nuclear program, no matter what. mr. romney, of course, had attacked mr. obama, saying he had failed to stop iran's nuclear program, but never said how he was going to do things differently. this nuclear program, a complicated issue, because iran has tied it to its national pride and identity, a way to show the world it won't back down to washington. sanctions don't appear to be working and no one suggested attacking iran anymore other than some israeli leaders. many say what will attack this deadlock is a deal where both sides say they gain something. but how? does washington concede something? important questions mr. obama will mull over in his second term. now, our fifth story. turning the social tie. for the first time in history, voters voted to legalize same-sex marriage. voters okayed the legalization of marijuana. maybe the president will go along with it.

all right. but then these ballot measures. that's the crucial question because colorado was a swing state. we know that. up for grabs. voters there supported the marijuana measure. he also won maryland, washington and maine. not all of those swing states. "outfront" tonight, john ave hon and sasha eisenberg. overall, karl rove credited with this on the republican side. put a ballot measure on that people care about, it will get people to the polls, get your guy elected? >> i don't think there was an organized move to put this on the ballot. slightly higher turnout for 18 to 29-year-olds in colorado than the rest of the country. campaign issues, they ten to

assume that presidency at the top of the ticket drives turnout this is the type of issue where you could see that there are people who would be brought to the polls because of interest, especially young voters, interested in pot. and people who wouldn't get a camp paper's attention but could be motivated to come out nonetheless. we'll know what exactly happened when the numbers come are senior a ban on gay marriage. george w. bush won nine of 11. some of the states we were talking about on the marriage -- the gay marriage issue were not swing states. colorado, wouldn't have turned the whole election, but -- >> you know, i actually think when you look at the exodus and you break it down, barack obama's way helped push the issues, minnesota, 2009, same issue on the ballot. went down. and on the ballot this month. it really looks like in the states.

a barack obama wave that helps get these passed, not the issues, getting barack obama nominate. >> 53% said yes, 43% said no. and how significant is that? >> very significant. maine was the state in 2009 that voted this down. a real bellwether here. the presidential election, higher turnout. ballot initiatives more likely to get a representative sample. what we've seen in on marriage equality. hit tapinging point. narrow majority of americans supporting it. and i think that, and also the marijuana legalization in colorado, what you saw, the older voters not supporting it, younger voters weren't. a generational change. i know, stunning. but, you know, it's significant to this extent. these ballot initiatives are showing where we're going as a country. could be good news for

republicans, but there are changes afoot both on marriage equality and marijuana legalization that are going to be the new normal down the line. >> what do you do about that? these are issues that were front and center. the whole platform being another issue, when most americans support acceptance. what should your party do? >> i think the party has to assess it. i would have to say this. it looks like -- 52-48, the interesting thing about the issues in the states, particularly gay marriage, it wins in the polls in pretty much every state and always failed at the ballot, except this time. i think this is barack obama's voters going out supporting it. will they be on the ballot in 2014? maybe not. but at least with gay marriage, it's happening at the polls and not by judges. >> sasha you study how campaigners target voters. what should they be targeting.

eric raising the question. >> i mean, i think that there always be interest in using sort of out of the box issues, candidates don't necessarily engage in, but can change the composition of the election. democrats are particularly interested. bill mentioned that they have to figure out how to run for office without war accident obama and need to bring minorities and young people to the process, part of the 2008 coalition, part of the 2012 coalition. not habitual voters, and my guess is that if they can find social, cultural issues that can help motivate those voters and connect with them, that they will look at them. >> democrats in michigan tried this as yell with a union ballot, and voters jekted it. they still have tow be careful. >> people are smart. thank you to all three "outfront" next, campaign is finally over. we're all saying we're so

exhausted, glad it's over. you know what? we'll look back at some of the things the candidates wished you would forget but you won't.

ally bank. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. we have so much technology in our store to really show the customers what's going on with their bodies. now you can feel what happens as we raise your sleep number setting and allow the bed to contour to your individual shape. oh, wow. that feels really good. during our semi-annual sleep sale, save $500 on our classic series special edition bed set-while supplies last. sale ends soon! you'll only find the innovative sleep number bed at one of our 400 stores, where queen mattresses start at just $699.

the very long campaign season finally over. as happy as we are to see it go,

we will miss the ups and downs on the campaign trail. sometimes it seemed both parties would say anything. other times it seemed they didn't know what they were saying at all. >> you said you had run a two-hour and 50 something marathon. it was actually over four hours. >> i just lost perspective on what normal times are. >> folks, i can tell you, and i've known eight presidents. three of them intimately. >> good morning, y'all. i lying grits. i love big bird. >> never been a day in the last four years i have never been proud to be his vice president. not one single day. >> not familiar precisely with exactly what i said. but i stand by what i said, whatever it was. >> a three little word. jobs. j-o-b-s, job. >> join me in welcoming the next president of the united states, paul ryan.